No Property sales for the last one year in Chennai

Dear friendsI used to see Free Ads paper to know the price quotings in RE section.In june 2008 one person has quoted price for 2200 sq.ft land with 1800 sq.ft building with all amenities Rs.85 lacs. This house is not sold for the last 7 months.In january 2009 1st week he quoted Rs.82 lacs. This week he has quoted Rs.80 lacs. Moreover, i can see many advertisement repeating for the last 7 months. From this we can know that property sales has come to standstill. And there is considerable price correction. Even though sellers are reducing the price slowly there are not any takers.Thankschataara

Is this called " living beyond one's reach" . In Tamil, we say " VIRALUKKU THAGUNDHA VEEKKAM " or " AGALAKKAAL VAIKKATHEY" . For the benefit of non Tamil members and guests, some one can translate in English?

Ankur Jain, a finance professional who lived in a leased flat in the central business hub of Parel, a stone's throw from his office, has moved house. Till a few months ago, he was more than willing to pay a monthly rental of Rs34,000 for his one BHK flat since it meant a commute-free life. Now, with the downturn lopping 20% off his salary, he has moved to the suburbs. The leased flat in Vakola has brought his monthly rentals down to Rs16,000, which is why he doesn't mind the 40-minute drive and traffic snarls anymore.

There are many Ankur Jains out there, moving from city centre to the near and distant 'burbs to save costs. Data from the stamp duty and registration office in Mumbai shows a marked shift from south Mumbai to the suburbs. The number of leave and licence agreements registered in the island city has fallen from last year's 263 to 179 in January this year, a fall of 32%. In February, 2009, only 171 lease agreements were registered as against the previous year's 265, a fall of 35%.

In contrast, the numbers are swelling in the suburbs. In January 2009, there were 5,573 registrations, up 80% from last year's 3,093. In February, the growth was slower at 15%, up from 2,567 last year to 2,955 this year.

People are renting, not buying property With more and more people moving from South Mumbai to the suburbs to save costs amid the global downturn. The trend has brought down residential rentals in the island city.

The number of rental agreements has gone up. In January and February, the number of leave and licence registrations saw the highest growth in the last two years, suggesting that people are renting more instead of buying property. The rise in number of registrations has, however, not brought a revenue windfall for the government. In fact, revenue earned by the department has been the lowest this year.

On the 3,126 lease documents registered in the island city and suburbs in February - a rise of 10% over last year - the government earned Rs5 crore as stamp duty, compared to Rs 6crore last year. This confirms that people are moving to cheaper rentals.

The figure is similar for January. Despite a 71% rise in lease agreements registered in the island city and suburbs put together, stamp duty earnings fell marginally from Rs8.3 crore to Rs8.2 crore. Landlords are trying hard to avoid a further drop in rentals by throwing in freebies, like fully furnished flats and free parking areas.

Ankur Jain, a finance professional who lived in a leased flat in the central business hub of Parel, a stone's throw from his office, has moved house. Till a few months ago, he was more than willing to pay a monthly rental of Rs34,000 for his one BHK flat since it meant a commute-free life. Now, with the downturn lopping 20% off his salary, he has moved to the suburbs. The leased flat in Vakola has brought his monthly rentals down to Rs16,000, which is why he doesn't mind the 40-minute drive and traffic snarls anymore.

There are many Ankur Jains out there, moving from city centre to the near and distant 'burbs to save costs. Data from the stamp duty and registration office in Mumbai shows a marked shift from south Mumbai to the suburbs. The number of leave and licence agreements registered in the island city has fallen from last year's 263 to 179 in January this year, a fall of 32%. In February, 2009, only 171 lease agreements were registered as against the previous year's 265, a fall of 35%.

In contrast, the numbers are swelling in the suburbs. In January 2009, there were 5,573 registrations, up 80% from last year's 3,093. In February, the growth was slower at 15%, up from 2,567 last year to 2,955 this year.

People are renting, not buying property With more and more people moving from South Mumbai to the suburbs to save costs amid the global downturn. The trend has brought down residential rentals in the island city.

The number of rental agreements has gone up. In January and February, the number of leave and licence registrations saw the highest growth in the last two years, suggesting that people are renting more instead of buying property. The rise in number of registrations has, however, not brought a revenue windfall for the government. In fact, revenue earned by the department has been the lowest this year.

On the 3,126 lease documents registered in the island city and suburbs in February - a rise of 10% over last year - the government earned Rs5 crore as stamp duty, compared to Rs 6crore last year. This confirms that people are moving to cheaper rentals.

The figure is similar for January. Despite a 71% rise in lease agreements registered in the island city and suburbs put together, stamp duty earnings fell marginally from Rs8.3 crore to Rs8.2 crore. Landlords are trying hard to avoid a further drop in rentals by throwing in freebies, like fully furnished flats and free parking areas.

i interpret from your post that rentals in the city have not fallen muchor he would have moved to some place in the city.

when all tend to move to the suburbs rentals will start increasing there adn at a point the city rentals would appear resonable to the suburb considering the time cost and effort of commuting.

there would be many ankur jains living in places of higher rentals and might think the 34000/- as reasonable and move in there(cost cutting)

so bigbear tell me when this 34000/- becomes 20000/- would be a time to rejoice not when ankurs need to move far away to save on rent.

i interpret from your post that rentals in the city have not fallen muchor he would have moved to some place in the city.

when all tend to move to the suburbs rentals will start increasing there adn at a point the city rentals would appear resonable to the suburb considering the time cost and effort of commuting.

there would be many ankur jains living in places of higher rentals and might think the 34000/- as reasonable and move in there(cost cutting)

so bigbear tell me when this 34000/- becomes 20000/- would be a time to rejoice not when ankurs need to move far away to save on rent.

ABK,This is the starting of the vicious down cycle.People were enjoying double digit salary hikes in last 4 years and were ready to pay whatever rent quoted by landlords.Now the bubble has bust and with impending job loss forcing these people to go for lower rentals.So they prefer to move to suburbs from cities.This will certainly bring down the rents in city.See what happened for commercial property rents.Earlier builders used to quote fancy rents for malls and IT buildings in cities but now even with reduced rent there are no takers.It is just matter of time 34000 come to 20000.Wait and watch.

Do you folks know? Rice was costing Rs 19 a kg even a year ago if I remember right. Now it is Rs 40. So dont tell me Rs 34K is anything! If you are jobless then you will have to sleep in the streets I suspect, if you dont have your own place! Got it!

New Delhi: DLF Ltd, the country's largest real estate developer, is expected to launch a residential project in West Delhi with rates less than 50% those of similar projects in the vicinity, according to market sources.The realtor's project at Shivaji Marg, an industrial area, will have 18 floors and over 500 two- and three-bedroom apartments in the first phase. The apartments, with an average size of 1,300-1,500 square feet, will be priced at Rs 5,000 per square feet.Industry experts believe that the DLF project will lead to a price war among developers in the region as Emaar MGF's similar project, Commonwealth Games Village, is priced at Rs 12,750 per square feet.The average final sale price for an apartment in the DLF project works out to about Rs 70 lakh. The company has asked for Rs 5 lakh as the booking amount. The rest can be paid in quarterly instalments. The project is expected to be complete in three years and could bring in sales of Rs 350 crore in the first phase.A DLF spokesperson declined to comment.Recently, DLF re-launched its Bannerghatta Road project in Bangalore with a price tag of Rs 2,100 per sq ft, as against Rs 2,775 earlier. It had also slashed prices for its Chennai, Hyderabad and Gurgaon projects.DLF was earlier planning to build an IT special economic zone at the West Delhi site, but changed its plan owing to falling commercial demand. It applied to the commerce ministry for denotification of the 25-acre plot.DLF had bought the parcel of land from DCM Shriram in 2007 in a Rs 1,675 crore deal.

As I had earlier said, one should not stretch their legs beyond what he/she can, lest he/she will fall or one should have the swelling upto a limit in the finger, lest he/she may not be able to use the finger. These are the rough translations of some Tamil proverbs. Applies to DLF as they have stretched too much.

As I had earlier said, one should not stretch their legs beyond what he/she can, lest he/she will fall or one should have the swelling upto a limit in the finger, lest he/she may not be able to use the finger. These are the rough translations of some Tamil proverbs. Applies to DLF as they have stretched too much.

ks2071746:D

you are right Mr. KS

Recently DLF has asked central govt. to denotify 4 SEZ sites which were to be developed by them.

Well, an increasing number of analysts are now starting to say, "Yes, We Can't!!!" :D

In other words, all this printing of money will do is one of the 2 below:

1. If this money gets stuck in Banks to re-capitalise them (as its happening now), severe deflation will set in followed by depression (in fact the imminent emergency in the US is the possible failure of Agricultural crops coming season since Banks are not lending and the whole cycle is jeopardised!).

2. If it gets out into the economy, severe inflation will set in literally sending the $$$ to the bottom.

Already, global apetite for Treasury Bonds is showing alarming weakness as seen last week when sales nearly failed.

Finally it might become a circular event with one arm of the Govt buying Treasury from another arm which issues them. This is called "Circular Jerking"! :D

The prognosis is that in all probability the US is toast. And since it used to consume 25% of the World's output, the Asian Export growth model is also toast. Get used to a longish period of fairly depressed period in former Asian Tigers, Lions and other predatory countries! ;)

The other informed people may correct this argument with improved logic! I would much appreciate it.

cheers

Dear friends

Inflation in our country is going to become deflation. 2 weeks back it has come down to 0.19 %. In the coming weeks it may go negative. Bad time for RE is imminent.

In spite of the lower inflation figures being published, the prices of essential commodities like rice, dal, oil, wheat, sugar etc. have not come down and they are still very high. The middle class is the worst affected in such scenario.